North Macedonia is planning a standalone battery at Bitola with a capacity of 100 MW / 400 MWh and an estimated cost of 98 million euros. Proposed financing would combine public and concessional support. The project reflects a wider Western Balkans approach, where smaller, less-liquid balancing markets make financing based solely on merchant revenues less dependable than in mature EU markets.
The proposed funding package includes the European Bank for Reconstruction and Development (EBRD), KfW, concessional climate finance and a Western Balkans Investment Framework (WBIF) grant. Its financing approach recognises system value that may not be fully monetised in a merchant market.
Western Balkan markets have attractive price volatility and rising renewable capacity, but balancing markets remain smaller and less liquid than those in mature EU markets. Revenue assumptions taken from deeper EU markets do not account for regional differences in market depth, liquidity, regulatory certainty and utility credit structures.
Battery projects and financing across the Western Balkans
In Albania, Fortis Energy’s co-located project at Erseke has reached ready-to-build status. It combines 75 MWp of solar with a 40 MWh battery, supporting solar integration and output shaping without relying on a standalone storage market to underpin the whole investment case.
Montenegro’s power utility EPCG is working with PowerX towards a target of roughly 500 MWh over three years. Separately, the government is pursuing a process for a strategic battery storage project (BESS).
Across these projects, the bankability bridge combines merchant value with public, utility or renewable-portfolio support. Lenders may require lower merchant leverage and more explicit credit enhancement than for comparable EU assets. Grants, sovereign guarantees, strong utility counterparties and co-located renewable cash flows can help compensate for limited market depth as trading frameworks mature.
Compared with mature EU markets, regional bankability is expected to rely more heavily on blended finance, utility credit and renewable co-location. Financing structures will need to address both market revenues and the additional support available to each investment.